Yahoo Finance Bitcoin Hits Reverse Early as the Bulls Lose their Grip
Bitcoin gained 1.59% on Wednesday, following Tuesday’s 1.01% rise, to end the day at $6,945 in what had been a relatively bullish day for Bitcoin and the broader market.
Following an early morning intraday low $6,777 that managed to avoid the day’s first major support level of $6,693.27, it was onwards and upwards from there, with Bitcoin breaking through the day’s first major resistance level of $6,940.67 with an intraday high $7,017.4 in the middle part of the day.
The bad news for the Bitcoin bulls was a failure to hold at $7,000 levels by the day’s end, with Bitcoin facing strong resistance at the psychological level through the remainder of the day.
Bitcoin’s moves through the day were in line with the broader market and, while Bitcoin enjoyed 2 consecutive days of gains, the bearish trend formed back in March remained intact, with Bitcoin yet to make a move through the 38.2% FIB Retracement Level of $7,480.57 and hold above to shift investor sentiment.
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At the time of writing, Bitcoin was down 1.63% to $6,830, with Bitcoin giving up gains from the early part of the morning.
Momentum from Wednesday supported Bitcoin’s move through to an early morning $6,965 high before the broad market sell-off saw Bitcoin slide to a morning low $6,753, falling through the day’s first major support level of $6,808.87.
With Bitcoin having failed to break through to $7,000 levels and test the day’s first resistance level of $7,049.27, sentiment will need to change across the market for Bitcoin to recover the morning’s losses and have a push for $7,000 levels and look for a move through the 23.6% FIB Retracement Level of $7,077.17 to begin reversing the extended bearish trend.
Failing to break back through to $7,000 levels in the middle part of the day will likely test investor appetite in the latter part of the afternoon, which could see Bitcoin pull back to $6,800 levels.
It’s been another day of ‘what might have been’ for Bitcoin, with another rally going into reverse as key resistance levels came into sight, the continued negative sentiment towards an anticipated shift in the crypto regulatory landscape pinning back the majors.
Looking across at the Cboe Bitcoin Futures, the April contract was down $110 to $6,810, with the smart money continuing to provide little direction for Bitcoin investors.
Elsewhere in the cryptomarket, Cardano’s ADA bucked the trend through the early part of the day, gaining 4.49%, with Ripple’s XRP and NEO amongst the biggest losers in what has been quite a morning sell-off.
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This article was originally posted on FX Empire
